Dexter Lee July 8, 2024

Key Takeaways

HDB downpayment requirements vary by property type and loan type in Singapore. For BTO flats, an HDB loan requires a 20% downpayment (payable via CPF or cash), while a bank loan requires 25% (5% cash, 20% CPF/cash). Resale flats follow the same structure. Executive Condominiums (ECs) require a 25% downpayment through bank loans, split into 5% cash and 20% CPF/cash. Proper financial planning and utilizing CPF savings can ease the home-buying process.

Buying a home is a major milestone and a significant financial commitment. In Singapore, prospective homeowners must understand the downpayment requirements for different types of Housing and Development Board (HDB) flats—build—to—order (BTO), resale, and Executive Condominiums (ECs).

This guide will break down the downpayment percentages, compare HDB and bank loans, and offer tips on financial planning to help you make an informed decision.

Downpayment Requirements for Different HDB Flats

Knowing the exact downpayment requirements is essential when purchasing an HDB flat. Here’s a breakdown of what you need for BTO, resale flats, and ECs.

BTO Flats

  • HDB Loan: The downpayment for a BTO flat is 20% of the purchase price, which can be paid using your CPF savings or cash.
  • Bank Loan: If you opt for a bank loan, the downpayment is at least 25% of the purchase price, with 5% paid in cash and the remaining 20% through CPF or cash.

Resale Flats

  • HDB Loan: The downpayment for resale flats is 20% of the purchase price, payable with CPF savings or cash.
  • Bank Loan: Similar to BTO flats, the downpayment is at least 25%, with 5% in cash and 20% via CPF or cash.

Executive Condominiums (ECs)

  • Bank Loan Only: ECs require a bank loan with a 25% downpayment (5% in cash and 20% through CPF or cash).

Understanding these percentages and preparing for them can significantly ease the home-buying process. Remember, these are general guidelines, and it’s always best to consult a financial advisor for personalised advice.

HDB Loan vs. Bank Loan

Choosing between an HDB loan and a bank loan is a critical decision. Each option has pros and cons, affecting your financial planning and monthly payments.

HDB Loan

  • Downpayment: 20% of the purchase price, payable via CPF or cash.
  • Interest Rate: Fixed at 2.6% per annum.


  • Lower initial downpayment.
  • Fixed interest rate provides stability.


  • Compared to bank loans, higher interest rates lead to higher long-term costs.

Bank Loan

  • Downpayment: 25% of the purchase price, with at least 5% in cash.
  • Interest Rate: Floating rates between 1.6% and 2.5%.


  • Lower interest rates, potentially reducing long-term costs.
  • Flexibility in choosing loan tenure.


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    • Higher initial downpayment.
    • Interest rates can fluctuate, leading to uncertainty.

    The choice between HDB and bank loans depends on your financial situation, risk tolerance, and long-term plans. A detailed comparison and consultation with a financial advisor can help you make the best decision.

    If you’re looking for financial assistance to cover your HDB downpayment, CreditMaster can help. We offer tailored loan solutions for individuals to make your home purchase more manageable. Apply for a loan with CreditMaster today and take the next step towards owning your dream home.

    Choosing the Right Loan for Your HDB Purchase

    Selecting the right loan for your HDB purchase is a critical step in your home-buying journey. When choosing between an HDB loan and a bank loan, consider factors such as the downpayment amount, interest rates, and loan tenure.

    An HDB loan offers a lower downpayment and a fixed interest rate, stabilising your monthly repayments. However, bank loans offer lower interest rates, which could reduce your overall costs in the long run.

    Additionally, consider your financial situation and risk tolerance. Consulting with a financial advisor can provide personalised insights and help you through the complexities of home financing, ensuring you make an informed decision that aligns with your financial goals and needs.

    Factors to Consider

    1. Downpayment Amount: An HDB loan requires 20% of the purchase price, which can be fully paid using CPF savings. On the other hand, a bank loan requires a higher downpayment of 25%, with at least 5% paid in cash.
    2. Interest Rates: HDB loans have a fixed interest rate of 2.6%, offering predictability. Bank loans offer floating interest rates ranging from 1.6% to 2.5%, which can be lower but subject to market fluctuations.
    3. Loan Tenure: The loan tenure for HDB loans can extend up to 25 years, while bank loans can vary, often offering shorter terms that might result in higher monthly payments but potentially lower overall interest costs.

    Specific Downpayment Scenarios

    Let’s look at practical examples to understand how these downpayments work for different flats.

    HDB BTO Downpayment

    Imagine buying a three-room BTO flat in Tampines, priced at $350,000.

    HDB Loan:

    • What you can borrow: 80% ($280,000)
    • Downpayment (CPF): 20% ($70,000)
    • Downpayment (Cash): None needed

    Bank Loan:

    • What you can borrow: 75% ($262,500)
    • Downpayment (CPF): Up to 20% ($70,000)
    • Downpayment (Cash): At least 5% ($17,500)

    As you can see, the downpayment amounts vary significantly between HDB and bank loans. For many, the higher cash requirement for bank loans can be a deciding factor.

    HDB Resale Flat Downpayment

    Consider a resale flat in Tampines, priced at $500,000.

    HDB Loan:

    • What you can borrow: 80% ($400,000)
    • Downpayment (CPF): 20% ($100,000)
    • Downpayment (Cash): None needed

    Bank Loan:

    • What you can borrow: 75% ($375,000)
    • Downpayment (CPF): Up to 20% ($100,000)
    • Downpayment (Cash): At least 5% ($25,000)

    Executive Condominium (EC) Downpayment

    For a three-room EC priced at $1 million:

    Bank Loan:

    • What you can borrow: 75% ($750,000)
    • Downpayment (CPF): 20% ($200,000)
    • Downpayment (Cash): 5% ($50,000)

    ECs require significant upfront payments, making them less accessible for some buyers.

    Additional Costs and Considerations

    Apart from the downpayment, other costs are associated with purchasing a home.

    Stamp Duty:

    Buyer’s Stamp Duty (BSD): Calculated based on the purchase price.

    • First $180,000: 1%
    • Next $180,000: 2%
    • Next $640,000: 3%
    • Next $500,000: 4%
    • Next $1,500,000: 5%
    • Remaining amount: 6%

    Legal Fees:

    Legal fees for conveyancing services are another expense to consider. These fees vary depending on the complexity of the transaction.

    Renovation Costs:

    Renovation costs can add up quickly, so budgeting for these expenses when planning your home purchase is essential.

    Special Considerations for Permanent Residents (PRs)

    Permanent residents (PRs) face slightly different requirements than Singapore citizens. PRs must pay an additional 5% of the purchase price for their first property. For subsequent properties, the ABSD rate increases.

    When planning your home purchase, consider including the ABSD in your budget. To reduce ABSD, consider joint ownership with a Singapore citizen.

    Tips for Saving and Preparing for Downpayment

    Saving for a downpayment is often one of the biggest financial challenges when purchasing an HDB flat. Here are several practical tips to help you build your downpayment fund more effectively:


    Track Your Expenses. Keep a detailed record of your monthly expenses to identify areas for savings. Determine the amount you need for the downpayment and set a realistic monthly savings target to achieve it.

    You should set up automatic monthly transfers to a dedicated savings account to ensure consistent savings without manual intervention.

    Using CPF Savings

    Maximise CPF Contributions. Ensure you and your employer contribute the maximum amount to your CPF account. Consider making voluntary CPF contributions to boost your savings.

    Use the CPF Special Account, which earns higher interest rates, to save additional money on your downpayment.

    HDB Schemes

    If you qualify, the staggered downpayment scheme spreads out the payments over time, making it easier to manage financially. To reduce the amount you need to save, explore available HDB grants such as the Enhanced CPF Housing Grant (EHG) and the Family Grant.

    Additional Saving Strategies

    • Reduce high-interest debt. Prioritise paying off high-interest debts to free up more money for savings.
    • Cut unnecessary expenses. Evaluate your spending habits and eliminate non-essential expenses like dining out, subscription services, and luxury items.
    • Increase income. Find opportunities to boost your income, such as freelance work, part-time jobs, or side businesses.
    • Invest wisely. Consider low-risk investment options that can grow your savings over time without exposing you to significant financial risk.
    • Save windfalls. Direct any unexpected income, such as bonuses, tax refunds, or monetary gifts, straight into your downpayment fund.

    Utilising Financial Tools

    • Budgeting Apps: Budgeting apps track expenses and progress in savings.
    • Savings Calculators: Use online calculators to estimate how much you need to save each month to reach your goal by your target date.
    • Financial Workshops: Attend workshops or seminars on financial planning and home ownership to gain more insights and tips.

    Government Assistance

    • Public Assistance Schemes: Check if you are eligible for any public assistance schemes that provide financial support for housing.
    • Community Resources: Utilise community resources and financial counselling services for additional support and guidance.

    Taking the Next Step Towards Your New Home

    Understanding the downpayment requirements for different types of HDB flats is crucial for making informed decisions. Knowing your options and planning can ease the financial burden of choosing a BTO, resale flat, or EC. For personalised advice, consider consulting with a financial advisor.

    If you’re ready to purchase your HDB flat and need financial assistance, consider applying for a loan with CreditMaster. We offer competitive rates and personalised loan solutions to help you secure your dream home. Apply now and let CreditMaster assist you in making your home ownership journey smoother and more affordable.

    Dexter Lee

    Born with a pen in one hand and a keyboard in the other, Dexter's been crafting words into beautiful prose since he was old enough to scribble on his walls (much to his mother's chagrin). He's a self-proclaimed pun master, often leaving his coworkers in stitches with his clever wordplay. He's been known to strike up conversations with strangers and turn their stories into captivating content that keeps readers coming back for more. Despite his unconventional approach to life and work, Dexter takes his job as a content manager very seriously. He knows that every piece of content he produces has the power to make a difference in someone's life, and he's committed to using his words for good.

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